What is A Rollover IRA

A Rollover IRA is a type of Individual Retirement Account designed for people who have changed jobs or retired and have assets accumulated in their employer-sponsored retirement plan.

Eligible distributions from such plans can be rolled over directly into an IRA without incurring any tax penalties, and assets remain invested tax-deferred. You can consolidate multiple retirement accounts into a single Rollover IRA to simplify your retirement savings and make it easier to allocate and monitor your assets.

Establishing a Rollover IRA is a flexible way to ensure your retirement savings continue to be invested and tax-advantaged, with as wide a range of investment choices as possible.

The following are reasons you may want or need to use an IRA rollover:

IRA-to-IRA Rollover
Used to transfer funds from one IRA to another IRA and retain their tax-favored status.

Qualified Plan-to-IRA Rollover
Used to receive distributions from an employer-sponsored qualified retirement plan (like a 401(k) and continue to defer taxation.

Conduit IRA Rollover
Used to receive distributions from an employer-sponsored qualified retirement plan and maintain their tax-favored status until the distributions are rolled back into another employer-sponsored qualified retirement plan.